Republic of Korea and Republic of Turkey Have Taken an Additional Important Step Forward to Augment Their Investment and Economic Relationship

On 14.04.2016, Council of Ministers’ affirming decision regarding ‘‘Agreement on Investment Under the Framework Agreement Establishing a Free Trade Area Between the Republic of Turkey and the Republic of Korea’’ (‘the Agreement’) was published on the Official Gazette

Since the commencement of
political relationship of the respective countries 67 years ago, the economic
relationship has shown a promising rise in the last 10 years. For example, in
2013, total trade has generated a volume of USD 6.1 billion. Indeed, it is safe
to assume that the instruments that were entered into force i.e. ‘‘Framework
Agreement Establishing a Free Trade Area between the Republic of Turkey and The
Republic of Korea’’ and ‘‘Agreement on Trade in Goods between the Republic of Turkey
and The Republic of Korea’’ have devised legal framework of such increase.

It is in this climate that the
Agreement, while substituting and replacing Bilateral Investment Treaty
between Turkey and Korea, it also seem to enhance scope of investment by adding
following elements in its Section B; licenses,
authorizations, permits, and similar rights conferred pursuant to domestic law
as well as turnkey, construction, management, production revenue-sharing, and other
similar contracts. Notably, the Agreement also introduces an article to
maintain a high level of environmental and health measures and not lowering
these standards in order to attract or expand investment from the other Party.

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